The Doraleh Container Terminal is a major port facility in the Port of Doraleh, Djibouti, strategically located along the Red Sea and near the Gulf of Aden. The DCT was built by the Dubai shipping companyDP World in 2006 after securing a 30-year contract by the government of Djibouti, and opened in 2009. In February 2018, following a dispute between the government of Djibouti and the Dubai-based shipping firm DP World, the government seized 33% of DP World stake and nationalized the terminal. The move was ruled as illegal multiple times by the UK's high courts as it have breached the contact in 2006. After seizing the port from DP World, Dijbouti government sold China Merchants Ports Holdings a quarter of the port's stake.
Construction and capacity
The DCT was built in 2009 by the Dubai shipping company DP World after securing a 30-year contract by Djibouti in 2006. The contract was one of a number of others won by DP World in the region, including one in Berbera, Somaliland. The DCT's quay is 1050 meters with 18 meters depth, and can hold 1.25 million TEU. The facility also operates eight Super-post-Panamax container cranes. An ENOC petroeum terminal is located adjacent to the DCT. The terminal is the largest employer in Djibouti and its largest source of revenue. As of 2015, the DCT was described as the most technologically advanced container terminal on the African continent.
Shipping activity
The port is called by major shipping services in the region, including:
In 2014 the Djibouti government accused DP World of bribing the port authority Abdourahman Boreh, and stated the operating contract was unfair. A Londoncommercial court cleared Boreh of misconduct in 2016. In November 2017, Djibouti passed legislation allowing it to renegotiate contracts related to strategic infrastructure. In February 2018, on the order of president Ismaïl Omar Guelleh, the Djibouti government seized the facility and placed it under the control of the government-owned Doraleh Container Terminal Management Company. The government stated that the DP World contract violated Djibouti's sovereignty. In response, DP world began a new arbitration case in London against the termination of their 30 year contract to manage the port to secure "compensation for their breach or expropriation." The Djibouti government stated it would engage in "normal compensation procedures" to pay for the nationalization. The nationalization has occurred as the United Arab Emirates has expanded its influence, included through military bases, around the Red Sea and East Africa. At the intersection of the Red Sea and the Gulf of Aden, and located next to the Bab el-Mandeb strait, Djibouti occupies a strategic position, and hosts US, Chinese, French and Italian military bases. Al-Jazeera has reported that according to its sources, relations between the UAE-based company and Djibouti were strained after Djibouti denied the UAE permission to build a military base on its territory. In 2017, a tribunal at the London Court of International Arbitration ruled against the Djibouti government claim that DP World's agreement was unfair, and ordered the government to pay DP World damages. The London court was led by English jurists Lord Leonard Hoffman and Sir Richard Aikens. In 2018 the London High Court prohibited Djibouti government's port company from interfering with the management of DCT. As per the ruling, the Djibouti government "shall not act as if the joint venture agreement with DP World has been terminated". As of January 2020, six legal rulings by London courts were won by DP World, with a ruling in January 2020 asking the Djbouti government to pay $533 million in compensation to DP World. An independent analysis has estimated DP World losses to be more than $1 billion. According to DP World, all rulings have been ignored by Djibouti despite the original contract for the concession was written and governed by English law. After seizing the port from DP World, Dijbouti government offered China Merchants Ports Holdings a quarter of the port's stake. When the deal with DP world fell apart, DP World moved to invest in the port of Berbera, while Ethiopia, who depended on the Doraleh Container Terminal for 95% of its imports, acquired 19% stake in the port of Berbera.
